Tuesday, November 01, 2011

Technical Picture - Failed Breakout

The S&P had its worst day since the Oct. 4th reversal, but still managed the best October performance in 20 years. Confidence in the euro was lost as it appears to be making a U-turn at the top of the ambush zone as depicted in the chart above. The euro dove more than 2% against the greenback. The yen was an even worse as it tumbled more than 3% after Japan's officials intervened in the currency in an effort to curb its strength after it had set a post-WWII record high last week.

ES futures have extended losses after hours. FOMC minutes on Wednesday afternoon and jobs data on Friday will set the stage for November.